I've got a couple of questions. First of all, did you do any maintenance on the tractor right before noticing the oil blowing out the breather? I hope that doesn't sound too simple, but it's always the most obvious place to look.
And let me see if I have this right....It doesn't immediately start to blow oil out the breather; it needs to run awhile first? And what does the oil on the dipstick look like when it begins to blow out the breather? Is it foamy? If foam, do you think that is from air being entrained into the oil? Any sign of water? Water in hydraulic oil looks a lot like foamy chocolate milk. A drop of suspect oil on a piece of blotter paper will show a jagged outer ring as compared to clean uncompromised oil.
Are you saying that it blows oil out for awhile and then stops blowing oil but keeps on blowing air while it runs? Does operating the hydraulic controls change how much pressure is coming out the vent?
OK, lets suppose it is entrained air from the suction side of the pump, and that is bulking up the volume until the excess oil (partly foam) is blowing out the breather. If you checked the hyd oil when it is blowing oil then at that time it would show as being way overfull and bubbly on the stick. And then after the tractor sat and the oil settled down the dip stick would show the normal amount. Is that happening? If that is the case, I would think that the hydraulic cylinders would work differently when filled with foamy oil than they do when starting out cold. You might even see the hydraulic cylinders take a moment to fill up from cold..... or if they have a load on them they could even sag an unexpected amount either overnight or just after starting up. Or even jump when first actuated.
rScotty